INScompanies Blog

Potential is high because Premera members use generics more frequently than national average

Mountlake Terrace, WA. (June 23, 2006) – If consumers continue their past generic drug switch-over patterns, Premera Blue Cross said today consumers moving from the two leading cholesterol drugs to the new generic formulation of Zocor could reduce area employer and consumer healthcare costs by up to $5 million annually.

“If pharmaceutical industry projections of consumers switching from cholesterol category leader Lipitor and #2 Zocor are close, we could see up to $5 million in savings for employers, consumers and the healthcare system,” said Ed Wong, Pharm. D., Premera Blue Cross Pharmacy Director. “Our members already use generics more frequently than the national average. Therefore, we are confident they will do the same with their cholesterol medication.”

The cholesterol drug category has one of the highest costs for prescribed medications. Zocor ranks second only to Lipitor in cholesterol prescriptions written. A leading pharmaceutical market research firm estimates that about half of the physicians surveyed would switch their patients to the generic. This was especially true for the physicians’ lower-risk patients.

With direct-to-consumer advertising and pharmaceutical rep “detailing” – the practice of giving away free samples to physicians pushing drug costs up in recent years, Premera began in September 2003 a campaign called “Generics – Yes!” to demonstrate to employers, members and providers how they could have an impact on healthcare costs just by switching to generics. Efforts by key clinics, such as The Everett Clinic, to prohibit the practice of “detailing” have also had an impact locally on increasing generic usage.

Premera has learned from its campaign that for every one percent increase in the generics prescribed results in a 1.4 percent savings, which annually achieves a multi-million dollar overall pharmacy cost savings. Premera currently provides prescription drug coverage to more than one million members. Pharmacy costs are projected by the federal government to exceed 11.5 percent of all U.S. healthcare expenditures.

“Employers, who entice their employees with financial incentives to switch to generics, can lower their drug bills by the same rate,” said Dr. Wong. “Of course, consumers have already seen how they can save on their co-pays by asking for generics.”

About Premera Blue Cross
Our mission is to provide peace of mind to our members about their health-care coverage. We provide health insurance and related services to more than 1.3 million people. Premera Blue Cross has operated in Washington since 1933, and Alaska since 1957. Premera Blue Cross is an independent licensee of the Blue Cross Blue Shield Association.

Premera Blue Cross is a member of a family of companies based in Mountlake Terrace, Washington, that provide health, life, vision, dental, and long-term care insurance, and other related services.

CONTACT:
Mark W. Stuart
Phone: 425-918-3297
Cell: 425-931-7379
mark.stuart@premera.com

Premera Announces Novel Springboard™ Program – Insurer will Subsidize Up to Two Years of Employers’ Program Cost for Employees’ Personal Health Assessments and Personal Health Coaching

Premera Introduces Health Risk Management Program at 10 a.m. on June 14 at News Conference being held at the Edgewater Hotel in Seattle

MOUNTLAKE TERRACE, WA – (June 14, 2006) – To help employers assist their employees in preventing poor health conditions that result from unhealthy lifestyles, Premera Blue Cross announced today encouraging results by Washington state employers adopting health risk management (HRM) programs — and introduced a new program, Springboard™, designed to dramatically accelerate the rate at which employers can build a culture of wellness in their workplace and inspire their employees to adopt healthier habits.

“Employers increasingly are considering HRM programs to address declining workplace health and rising healthcare costs,” said Gubby Barlow, CEO of Premera Blue Cross. “We’re launching Springboard™ to enhance support for our members at every stage of health. This is part of a larger effort aimed at twin goals of better health and more sustainable costs for our members.”

With Washington state health officials, prominent employers and consultants, Premera announced the Springboard™ program, which will subsidize up to two years of HRM program costs — including annual confidential personal health assessments and personal health coaching — for mid-size and larger employer groups in every state the company serves, as a way to jump-start efforts to improve employee wellness in the Northwest.

“The health challenges facing Washington residents have never been greater,” said Maxine Hayes, MD, Washington State Health Officer. “Increased rates of obesity, diabetes and other preventable conditions combined with decreased amounts of physical activity are putting more people at risk for fast declining health later in life.”

Premera’s analysis, involving results from three major Washington corporations, shows a clear opposite, positive trend. The first year HRM results from these employer groups demonstrate that every employer saw significant improvement in a single year for employees identified as high risk, while keeping moderate to low risk groups from moving into the high risk category.

“Personal health assessments and personal health coaching work. These results, in context with longer term studies, are exceptionally encouraging,” said Dave Johnson, MD, regional medical director for Premera Blue Cross. “We’re seeing a dramatic improvement in wellness in a short period of time.”

Other studies show a strong correlation between improved wellness scores and fewer sick days, increased productivity and reduced health-care costs for the employer, Dr. Johnson noted.

“We are hopeful these employer groups will take a similar track,” Dr. Johnson said.

“Our employer groups using HRM programs in the past have already begun seeing the benefits of a healthier employee population,” said Barlow. “We expect that Springboard™ will allow more employers to take the important first step to building a culture of wellness in their workplace.”

For employers interested in a more intensive HRM program including components such as on-site biometric testing and participation in a multi-employer trust, ClearAdvantage (a Premera program) is offered through ClearPoint, LLC. The trust is expected to be formed by Fall 2006.

Premera will be holding a news conference to discuss the results and the new Springboard™ program. The conference will be held at the Edgewater Hotel in Seattle, WA (2411 Alaskan Way, Pier 67) beginning at 10 a.m. Members of the media may also listen to the news conference on the web at www.pugetsoundvideo.net. After entering the site, click on the Premera Blue Cross tab on the left. When the Premera logo appears at the top, click on it and that will open a windows media player showing the meeting live.

About Premera Blue Cross
Our mission is to provide peace of mind to our members about their health-care coverage. We provide health insurance and related services to more than 1.3 million people. Premera Blue Cross has operated in Washington since 1933, and Alaska since 1957. Premera Blue Cross is an independent licensee of the Blue Cross Blue Shield Association.

Premera Blue Cross is a member of a family of companies based in Mountlake Terrace, Washington, that provide health, life, vision, dental, and long-term care insurance, and other related services.

CONTACT:
Mark W. Stuart
Media Relations Manager
Phone: 425-918-3297
Cell: 425-931-7379
mark.stuart@premera.com

OR
Scott Forslund
Communications Director
Phone: 425-918-5070
Cell: 425-280-1653
scott.forslund@premera.com